Finance News

Average Buy-to-Let Loan

Em Morley - December 19, 2013

Latest research from the National Landlords Association (NLA) reveals that the average buy-to-let loan applied for in the UK is £149,000.

Average Buy-to-Let Loan

Average Buy-to-Let Loan

The range of buy-to-let loan values does differ drastically around the UK, as one third (33%) of landlords borrow between £50k-£100k to fund their house buying.

Additionally, 27% of landlords borrow between £100k-£149,999. 13% borrow between £150k-£199,999. 5% borrow between £200k-£349,999, and 12% borrow over £250k.

Around the UK, landlords in central London borrow the highest amount, at about £228,000, a difference of £141,000 compared to the average landlord in Scotland, borrows under £87,000.

Full regional borrowings1

Region Buy-to-let loans
Central London £227,813
Outer London £198,790
South West £158,807
South East (excluding London) £152,777
West Midlands £149,333
East of England £125,000
North West £117,647
Wales £112,500
East Midlands £106,373
Yorkshire & Humberside £103,431
North East £101,250
Scotland £86,538

Chairman of the NLA, Carolyn Uphill, says: “While these findings indicate that the current mortgage finance market is healthy, it shows that landlords, and their finance needs, are far from homogenous.

“Like any small enterprise, private landlords are always looking for an opportunity to invest and grow and this is only possible if their individual circumstances are taken into account by lenders.

“In order to support the provision of homes where and when they are needed, landlords need access to tailored, affordable finance, which makes investment viable.

“Landlords who are looking for a new property should contact NLA Mortgages, where they will have access to a wide range of products not available in the general marketplace.

“NLA Mortgages features a free online search which will instantly check the best deals available and includes a handy rental calculator to help landlords find products that fit their expected rental income.”1

1 http://www.landlords.org.uk/news-campaigns/news/average-buy-let-loan-£149k